WTI Oil is holding within narrow range around $47.00 handle on Friday, following previous day’s spike to $47.72, the highest since 07 June.
Oil price failed to clearly break above key barrier at $47.30 (04 July former high) and ended Wednesday’s trading in red candle with long upper wick which could be seen as initial signal of stall of recovery rally from $43.63 (10 July low).
Thickening and descending daily cloud continues to weighs on near-term action, along with bearish divergence on daily slow stochastic.
Initial support at $46.66 is provided by 55SMA, with break here needed to generate bearish signal for deeper pullback. Pivotal support lies at $45.80 (18 July trough, reinforced by rising 20SMA) break of which will be bearish.
On the other side, inverted H&S pattern that was completed on 4-hr chart, continues to underpin for renewed attempts through daily cloud base ($47.20) for retest of Wednesday’s high at $47.72 and possible extension towards $48.18 (Fibo 61.8% of $51.98/$42.04) in extension.
Scenario will be valid while the price holds above $46.66 support.
Res: 47.19, 17.30, 47.72, 48.18
Sup: 46.66, 46.13, 45.80, 44.97
